Patrick Grove's Catcha files to raise US$250m for blank-cheque firm

Singapore

SINGAPORE-BASED Catcha Group has filed to raise US$250 million for a special purpose acquisition company (SPAC), saying the vehicle would target technology companies in South-east Asia and Australia.

The SPAC, called Catcha Investment, will be run by Catcha Group's co-founders Patrick Grove and Luke Elliot. Mr Grove, who has set up startups including iflix, iProperty Group, and iCar Asia, will serve as chief executive and chairman; Mr Elliot will serve as president and director.

Although it will "not be limited to a particular industry or geographic region", South-east Asia and Australia were chosen as focal points because of its sponsor's "strong synergies" in deal flow, network, operating and technical expertise in these markets, it said in a regulatory filing to the US Securities and Exchange Commission (SEC).

It would seek an acquisition in "new economy sectors", citing technology, digital media, financial technology, and digital services as possibilities. The blank-cheque company is also likely to target companies that are worth over US$1 billion.

Sources told BT that having entrepreneurs as sponsors could help the SPAC differentiate itself from others in the market that are typically run by hedge fund managers or bankers, since the former might be able to better understand what tech founders want and the worries they face while taking a company public.

"Catcha Group has made over 50 investments globally which are held directly or indirectly, and brought six digital businesses from their early stages to a public listing or sale," it said.

It added: "Our team combines global industry knowledge with deep on-the-ground experience gained from a long history of operating and investing in new economy sectors in Asia. We believe that through their reputation and deep network of contacts, our team affords us with differentiated access to a wide range of investment opportunities in this space."

The blank-cheque company counts several South-east Asian venture capitalists as board members. Those listed on Catcha Investments filings are Gobi Partners' founding partner Thomas Tsao, 500 Startups' managing partner Khailee Ng, K3 Ventures' founder and managing partner Kuok Meng Xiong, Jungle Ventures' managing partner David Gowdey, as well as Qiming Venture Partners' partner Helen Wong.

Catcha Investments expects to start trading at US$10 per unit in mid-February, on the New York Stock Exchange. The blank-cheque company will offer 25 million units, and every unit will consist of one share of common stock as well as one-half of a warrant, exercisable at US$11.50.

At the proposed deal size, Catcha Investment could command a market value of US$313 million, filings noted.

Catcha Investment joins many other investment companies that have sponsored SPACs this year and are now hunting for merger deals. Companies acquired by SPACs include Nikola Corp, a developer of hydrogen fuel vehicles, spaceflight firm Virgin Galactic and sports wagering firm DraftKings. According to The Wall Street Journal, nearly 300 SPACs are now seeking deals, armed with about US$90 billion in cash. The pace is keeping - an average of five new SPACs are announced each business day this year.

These vehicles are generating a lot of interest because they make it easier for startups in hot industries to go public quickly, without the scrutiny and cost of a traditional initial public offering. These vehicles are essentially big pools of cash listed on an exchange. Their purpose is to find a private company, buy it and take it public in as fast as two months.

Some 240 vehicles listed on US exchanges last year raised about US$78 billion, more than the total raised in all previous years, according to Bloomberg.

In South-east Asia, tech firms that are reportedly eyeing the public markets include Grab, Gojek, Tokopedia, Traveloka and Trax.

Tokopedia had reportedly received a merger offer from Bridge-town Holdings, a SPAC backed by billionaires Richard Li and Peter Thiel.

Other SPACs that have their eye on the South-east Asia market include Vickers Venture Partners' Vickers Vantage Corp I, and Crescent Cove Acquisition Corp, which is backed by San Francisco-based tech investment firm Crescent Cove Advisors.

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